Stocks retreated a bit from yesterdays all time high as a full slate of bell weather companies report earnings to include Faceplant, Ma Bell, the Lazy B, Micropoopie and Tesla. At the close the Dow was off 59 points to 26,597. Trading volume was off about 3%. Lately we have seen a pattern of higher volume up days and lower volume down days which indicates the rally is alive for now.
Boeing reported first quarter numbers and as expected they were down. Revenue came in lower by 2% and net income was off 13%. The company also removed 219 orders from its backlog but did not specify which airlines were behind the canceled orders. The companies previous 2019 forward earnings guidance was pulled, and management said they will not issue guidance for now. The share buyback plan was also suspended. Boeing has cash on hand of $7.7 billion. The company is targeting the 3rd week of May for FAA approval for the 737-software fix and an “ungrounding” of the Max sometime in July. Shares were higher after the release. While the numbers missed guru estimates the general feeling is that the financial hit was not as bad as feared and that Boeing is not facing any kind of a liquidity crunch at this time.
AT&T reported numbers that beat estimates, but shares were lower because paid TV subscriptions fell even while mobile cell customer signups were up. Overall revenue was 18% higher while net income only gained 1%.
Chevron recently made a $50 billion offer to buy Anadarko Petroleum and today Occidental Petroleum crashed the party with a $57 billion offer for Anadarko. Gentlemen start your engines! We will see how this bidding war goes.